Good news! The Obama Administration’s Car Czar – tasked with reorganizing the auto industry with government tax dollars – is resigning. The bad news? His replacement, Ron Bloom, is a union label hatchet-man. The Washington Examiner digs up a choice quote on his managerial prowess:

Bloom’s relevant experience appears to be negotiating for unions with troubled companies, and so it would be useful to know his approach. Thanks to an old Time magazine collection of quotes, here it is:

"Let me give you some advice. First, we are big believers in dentist chair bargaining. For those of you not familiar with this approach, it is inspired by the story of the man who walks into his dentist’s office, grabs the dentist by the balls and says, ‘now, let’s not hurt each other.’ We do have a lot to lose and we and everyone else knows it. But what you need to understand is that we are willing to lose it."

We’re sure his subtle negotiating techniques will be on full display in the coming months. But will Bloom actually manage the auto industry task force with anything approaching impartiality? The Examiner is skeptical (emphasis mine):

The president of the United Steelworkers, Leo W. Gerard, said of Bloom in a New York Times piece: "He’s going to Washington to help the administration sort out problems, and that’s his gift,” said Leo W. Gerard, president of United Steelworkers. “Ron has been a problem solver. He has worked on 50 bankruptcies over the last 20 years. He has a lot of experience and knowledge. There’s a big problem — we want to save the auto industry in America — and that’s what Ron is going to help them do."

But will he be saving the industry, or helping the unions perpetuate its woes? So far, the Obama administration’s "bankruptcy negotiation" technique has amounted to strong-arming and ruining the reputations of senior creditors who resist being written out in favor of unions. With the choice of Bloom, it is more obvious that the unions now sit on both sides of the negotiating table. Unless, that is, you believe an administration that fires CEOs is not really running the auto industry in which it owns a huge stake.

Posted on Jul 16, 2009 in Blog